The newly discovered short-period close binary star, XY LMi, has been monitored photometrically since 2006. Its light curves are typical EW-type light curves and show complete eclipses with durations of about 80 minutes. Photometric solutions were determined through an analysis of the complete B, V, R, and I light curves using the 2003 version of the Wilson-Devinney code. XY LMi is a high fill-out, extreme mass ratio overcontact binary system with a mass ratio of q = 0.148 and a fill-out factor of f = 74.1%, suggesting that it is in the late evolutionary stage of late-type tidal-locked binary stars. As observed in other overcontact binary stars, evidence for the presence of two dark spots on both components is given. Based on our 19 epochs of eclipse times, we found that the orbital period of the overcontact binary is decreasing continuously at a rate of dP/dt = -1.67 x 10(-7) days yr(-1), which may be caused by mass transfer from the primary to the secondary and/or angular momentum loss via magnetic stellar wind. The decrease of the orbital period may result in the increase of the fill-out, and finally, it will evolve into a single rapid-rotation star when the fluid surface reaches the outer critical Roche lobe.